Retirement Market Sizing Report U.S.

Retirement Market Sizing Report U.S. Fall 017

Retirement Market Sizing Report U.S. About This Report This Strategic Insight (SI) Research report, Retirement Market Sizing Report U.S., provides a comprehensive perspective on the size and growth of the U.S. defined contribution (DC) marketplace and the retirement industry as a whole. The report combines Strategic Insight s best thinking on market dynamics with its proprietary model to forecast growth and to outline the factors contributing to the evolution of this market. The report offers insight on formative themes that will impact various segments of the industry, including analysis of demographic, investment strategy, and investment packaging trends. It is based on a foundation of data and research from affiliated Strategic Insight tools and businesses, such as Simfund, BrightScope, Investor Economics, PLANADVISER, and PLANSPONSOR, as well as third-party resources, including: Callan Associates, Investment Company Institute (ICI), Pew Research Center, Transamerica Center for Retirement Studies, U.S. Census Bureau, and U.S. Department of Labor (DOL). Matthew Cirillo, Senior Analyst, Retirement matthew.cirillo@strategic-i.com (617) 670-4708 About The Author Matthew Cirillo serves as Senior Analyst, Retirement, where he supports and contributes to Strategic Insights efforts related to retirement research and product offerings. Matthew s responsibilities include providing actionable insight and research on retirement industry themes and trends, as well as the enhancement of tools aimed at providing clients with transparency into the U.S. retirement marketplace. Prior to joining Strategic Insight in 016, Matthew spent 10 years with MFS Investment Management. Matthew holds a BS in Business Administration from Saint Michael s College and an MBA in Strategy & Business Analysis from Boston University.

Retirement Market Sizing Report U.S. Fall 017 Table of Contents D Directory of Exhibits 1 Key Takeaways & Methodology Market Dynamics & Factors Shaping The Industry 9 Retirement Market Overview 19 4 Defined Contribution Market Overview Investment Strategy Trends 9 6 Investment Packaging Trends 9 7 Trends In Defined Contribution Sales 49 8 Regulatory Update 7 9 Looking Ahead 61 1

Directory of Exhibits Market Dynamics & Factors Shaping The Industry 1 016 U.S. Population Estimates by Age The Generations Defined Life Expectancy by Generation 4 Retirement Expectations by Generation U.S. Workforce Demographics 6 Evolution of the U.S. Household 7 Household Savings Spectrum 8 College Savings Vehicle Popularity Retirement Market Sizing Report U.S. Fall 017 Retirement Market Overview 1 U.S. Retirement Market by Plan Type Historical Share of U.S. Retirement Market U.S. Retirement Market Growth by Segment 4 Defined Contribution Market Overview 1 Defined Contribution Assets by Plan Type Defined Contribution Asset, Appreciation, and Net Flow Projections Defined Contribution Asset Forecast 4 Defined Contribution Market by Plan Size YE 016 Investment Strategy Trends 1 Default Investment for Auto Enrollment Target-Date, Target-Risk, and Balanced Mutual Funds Annual Net New Flows Historical Target-Date Mutual Fund Assets and Net Flows 4 Target-Date Mutual Fund Assets Forecast Socially Conscious Exposure in Target-Date Funds 6 Retirement Income Services in Plans 7 Lifetime/Retirement Income Product Development Outlook 8 Active vs. Index Defined Contribution Mutual Fund Assets 9 Index Fund Use in Defined Contribution 10 Defined Contribution Mutual Fund Asset Allocation

Directory of Exhibits D 6 Investment Packaging Trends 1 Types of Investment Vehicles in 401(k) Plans Mutual Fund Assets Percent of Total Defined Contribution Zero/Zero Mutual Fund Asset Growth 4 Zero/Zero Share of DCIO Sales Defined Contribution Asset Manager Flow Ranking by Vehicle 6 Defined Contribution Adviser Product Preference 7 Retirement Plan Flows Breakdown 8 Target-Date Fund Assets by Vehicle 9 Exchange-Traded Funds in Target-Date Funds 10 Exchange-Traded Fund Asset Class Breakdown in Target-Date Funds 7 Trends In Defined Contribution Sales 1 Recordkeeper Consolidation Top 10 Recordkeepers by DC Assets Top Five Challenges Facing DCIO Managers 4 In-Person Financial Adviser Access DCIO Value-Add Offerings 6 Adviser Presence by Segment 7 DCIO Sales Team Growth Directory of Exhibits